Pound on yet another Brexit roller-coaster ride
Friday 23 November 2018
Yes folks it's largely all about Brexit again as the week draws to a close. A draft deal agreement announcement sent the Pound higher but it's far from a completed withdrawal or indeed one that has overly positive tones for the UK. Cue reality check, Pound falling and markets/algos waiting on the next feed from the trough of uncertainty at this week-end's EU meeting while US traders still stuff themselves with Thanksgiving treats but algos remain ever poised.
GBPUSD spiked to 1.2925 from 1.2785 only to return from whence it came and then spent hours tightly bound between 1.2845-95 as traders re-assessed before falling further back again this morning to test 1.2830 support. Immediate offers now at 1.2880 then larger at 1.2900, 1.2920 and 1.2950. Bids/demand building at 1.2830,1.2800, 12780 1.2765 then 1.2750, 1.2720 and larger at 1.2700 still.I remain GBP bearish overall and happy to jump on rallies then buy back in the dips while remaining core short, a strategy that continues to work well. May will be appearing on a radio phone-in at lunchtime today so let's see what the algos make of the blather again.
EURGBP has also been tightly bound after a drop to 0.8841 on the Brexit-positive GBP rally and the jury remains out.Decent buy interest still poised around 0.8830 and 0.8800 with sellers now at 0.8880, 0.8900 and 0.8920.
EURUSD has one again tested 1.1425 before capping again and pushed below 1.1380 this morning on soggy EU PMI data.Immediate bids/support now between 1.1350-60 still, 1.1320 and 1.1300 with sell interest building at 1.1400 then 1.1420-25 again, 1.1450, 1.1475-80 and larger at 1.1500 still.
USDJPY held 112.80 again but failed on a rally attempt above 113.00 before retreating once again.Immediate sell interest now at 113.00 then still at 113.20-25 and 113.50 with bids building here at 112.75-80, then larger at 112.50. I remain a rally seller buying back in the dips.
USDCHF continues to also trade tightly but remains underpinned possibly with some SNB smoothing assistance and has held 0.9920 again before capping at 0.9969.EURCHF similarly seems to have a support line around 1.1320 but sellers still poised everytime risk sentiment wobbles.Bids/support now at 1.1320 still then 1.1300 and 1.1280 with USDCHF demand at 0.9920, 0.9900 and 0.9980.Sellers poised between 1.1350-60 still then 1.1380 and 1.1400 with USDCHF supply now around 0.9980 and 1.0000 still. I'm happy to trade both sides of the price action at the moment in these tight ranges.
AUDUSD has fallen back again to test 0.7230 with larger bids at 0.7200 and 0.7180 still and sellers now lurking between 0.7250-60 again then larger at 0.7280 and 0.7300 still. USDCAD has fallen back further to test 1.3180 before rebounding to 1.3223 as I type with more buyers at 1.3160 and sellers poised now around 1.3250,1.3280 and 1.3300 still.
Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.
Tomorrow the mighty Shrimpers return to league duty at Wimbledon in real need of points to stop the current rot and I'll be there to give whatever vocal support I can.
Have a great week-end out there wherever yours takes you.
Interbank Rate 08.50 GMT GBPUSD 1.2833 EURUSD 1.1368 EURGBP 0.8856 GBPEUR 1.1289 USDJPY 112.90 USDCAD 1.3217 USDCHF 0.9965 GBPAUD 1.7738 GBPCAD 1.6968 GBPCHF 1.2792 GBPHKD 9.9495 EURHKD 8.8134